If a finance company offered me a settlement amountfor less thanI owe on my truck loan, shouldI pay it?

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If a finance company offered me a settlement amountfor less thanI owe on my truck loan, shouldI pay it?

I have a truck that I got behind on payments on. This truck was put on my credit as a charge off of $10,999. It has destroyed my credit but I do still have the truck. I called the finance company that I bought the truck from and they told me they would take $6,000 right now to release my title and to show a settled status on my credit report. They e-mailed a letter stating this to me and said the sent a paper one to my PO Box. Can I trust that they will honor the letter ? Or can they still just keep the money and the title?

Asked on March 11, 2011 under Bankruptcy Law, Nevada

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Yes, of course you can settle the mater directly with the finance company but I would have an attorney look at the documentation before you sign and agree to anything.  Bring with you the original agreement as well to make sure that everything is covered by the offer.  many creditors are taking a reduction in the amount of the overall loan in order to get the money sooner rather than later.  You would be smart to do this if you can and it seems from what you have written like a great deal.  It is worth paying an attorney here. Ask for a consultation fee which should be less and a fixed amount. Good luck.


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